Slow

The U.S. natural gas market — and thus, long-term gas prices — won’t be upended because of the unconventional resource “revolution” because marginal costs ultimately determine gas prices, according to Morningstar.

Lower commodity prices weren’t enough to slow business at National Oilwell Varco Inc. (NOV), which reported a growing backlog of capital equipment orders and increased quarterly earnings compared with 2Q2011.

Lower commodity prices weren’t enough to slow business at National Oilwell Varco Inc. (NOV), which reported a growing backlog of capital equipment orders and increased quarterly earnings compared with 2Q2011.

Even with a continuing slow recovery in the regional economy, natural gas demand is expected to grow steadily at just under 1% annually during the next 10 years, with gas used for power generation expected to lead the growth, according to the 2012 Gas Outlook released Saturday by the Northwest Gas Association (NWGA).

The Canadian government promised Thursday to speed up the country’s notoriously slow environmental approval process by setting tight deadlines for regulatory agencies, reducing overlap with provincial reviews, improving Aboriginal consultations and making protests potentially tougher to mount.

The Canadian government promised Thursday to speed up the country’s notoriously slow environmental approval process by setting tight deadlines for regulatory agencies, reducing overlap with provincial reviews, improving Aboriginal consultations and making protests potentially tougher to mount.

Pacific Gas and Electric Co. (PG&E) said last Friday that a slow drop in pressure occurred during a hydrostatic pressure test on a portion of the same 30-inch diameter transmission pipeline (Line 132) involved in last year’s deadly San Bruno rupture near Palo Alto. It turned out to be a small pinhole leak of approximately one millimeter in diameter, a situation that PG&E stressed was safe with no customer impacts. This is the second recent incident in the utility’s ongoing intensive pipeline testing program prompted by San Bruno (see Daily GPI, Oct. 26). PG&E said the water leak was detected during the initial phase of a hydrostatic pressure test at 75% of the test pressure for one hour. The pressure at the time of the leak was 525 psig; Line 132’s maximum allowable operating pressure is 400 psig. Its normal operating pressure is 375 psig and it is currently operating at a reduced pressure of 300 psig, mandated since the San Bruno incident. PG&E said it will identify the exact location of the leak in the next few days, excavate, make repairs and then reconduct the hydrostatic pressure test.

Early results, albeit preliminary and limited, indicate that the Niobrara play in southeast Wyoming is slow in coming to fruition, according to the state’s top oil/gas exploration and production official.

Drought-related water shortages in the Midcontinent, flooding in the Marcellus Shale and a slow recovery in the Gulf of Mexico (GOM) failed to deter Halliburton Co.’s North American operations during 3Q2011, CEO Dave Lesar said Monday.